Depreciation Expense Journal Entries is an accounting term for a process that accounts for the wear and tear of an asset over its useful life. Basically, it’s a way of gradually spread out the cost of an item over its lifespan so that your business can record the estimated cost over each period of time. In other words, it’s like a tax deduction on your profits to recognize the effect of inflation or certain investments. The journal entries associated with Depreciation Expense allow companies to manage their finances better and streamline their accounting processes.